AI-Driven Transportation Market Poised for Spectacular Growth, Estimated to Reach $9.17 Billion by 2029
21 Jan, 2025
What Has Driven The Artificial Intelligence in Transportation Market During Recent Years?
The artificial intelligence (AI) in transportation market has experienced substantial growth in recent years due to various industry-wide advancements.
• In 2024, the market size was positioned at $3.63 billion, which surged to $4.29 billion in 2025 showing an impressive CAGR of 18.2%.
The upswing can chiefly be attributed to the usage of AI in analyzing real-time information, the proliferation of cameras and sensors for collision avoidance, the growth of advanced computing and deep learning systems. An increasing emphasis on automation for improved safety and efficiency further accelerated these trends.
What Is The Future Outlook Of The Artificial Intelligence in Transportation Market Following Forecast Period?
The AI in transportation market is expected to depict exponential growth over the next few years.
• The market is poised to reach $9.17 billion by 2029, growing at a robust CAGR of 20.9%.
This escalated growth will stem from expansion of AI applications in supply chain and logistics for efficient operations, surge in AI adoption for autonomous vehicle development, and integration of AI in multimodal transportation planning. A growing demand for AI-driven solutions in public transportation systems further reinforces this trend.
What Factors Are Driving The Growth of The Artificial Intelligence in Transportation Market?
The escalating demand for autonomous vehicles is a considerable driver propelling the growth of AI in the transportation market. Autonomous vehicles leverage AI technology to drive, sense accidents and obstacles. According to a 2023 report published by the Victoria Transport Policy Institute, it is estimated that half of new vehicles may be autonomous by 2045, hence driving AI in the transportation market forward.
How Is The Artificial Intelligence in Transportation Market Segmented?
The artificial intelligence in transportation market is segmented as follows:
1) By Offering: Hardware, Software
2) By Machine Learning Technology: Deep Learning, Computer Vision, Context Awareness, Natural Language Processing
3) By Process: Signal Recognition, Object Recognition, Data Mining
4) By Application: Semi Autonomous Truck, Truck Platooning, Predictive Maintenance, Precision And Mapping, Autonomous Truck, Other Applications
What Trends Are Shaping The Future of The Artificial Intelligence in Transportation Market?
Technological advancements are currently emerging as a significant trend in the AI in the transportation market. Companies are investing in new product innovations to strengthen their market stance. For instance, Qualcomm's launch of Snapdragon Ride in 2022 aims to simplify autonomous driving by deploying high-performance hardware, AI technologies, and an autonomous driving stack.
Who Are The Market Leaders In The Artificial Intelligence in Transportation Market?
Key players in this market include:
• The Volvo Group
• Mercedes-Benz Group AG
• Scania AB
• Peloton Interactive Inc.
• Valeo SA
• Xevo Inc.
• Nvidia Corporation
• Intel Corporation
• Robert Bosch GmbH
• Continental AG
These players are driving innovation by creating value in the industry through strategic collaborations and partnerships.
What Are The Regional Insights Into The Artificial Intelligence in Transportation Market?
In 2024, North America was the largest region in the AI in transportation market. However, Asia-Pacific is projected to be the fastest-growing region during the forecast period. The report covers different regions including Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, and Africa.